Ocean Power Technologies, Inc. Announces Third Quarter Fiscal 2022 Results
14 Mars 2022 - 9:30PM
Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE
American: OPTT), a leader in innovative and cost-effective
low-carbon marine data, power, and consulting service solutions,
today announced financial results for its third quarter
ended January 31, 2022.
BUSINESS HIGHLIGHTS
- As previously announced, the
Company completed its acquisition of Marine Advanced Robotics (MAR)
on November 15, 2021, expanding OPT's commercial offering into
autonomous vehicles for maritime data services. MAR is expected to
contribute approximately $2.0 million to revenue for Fiscal Year
2023. In the 3Q22, the Company recognized $257,000 of revenue
related to MAR.
- Revenues grew 53% to $484,000 in
the third quarter of Fiscal Year 2022 compared to $317,000 for the
third quarter of Fiscal Year 2021, driven by MAR and the growth of
Strategic Consulting Services.
- OPT continued development of its
proprietary next-generation Maritime Domain Awareness ("MDA")
software, configured to provide cyber-secure autonomous monitoring
of large ocean areas, such as windfarms, marine protected areas,
and areas of interest to national security, suitable for
installation on buoys and vehicles.
- The Company continued its offshore
testing off the coast of New Jersey for OPT's continued development
of this leading-edge MDA solution.
- Subsequent to quarter-end, Matthew
Burdyny, a seasoned marine technology sales and strategy executive,
joined OPT as Vice President, Global Sales & Marketing.
Management Commentary – Philipp
Stratmann, OPT's President and Chief Executive Officer"Our
third quarter was headlined by our largest acquisition to date –
Marine Advanced Robotics (MAR), a manufacturer of autonomous
surface vehicles, that brings new customers, revenue, and an
excellent team to OPT, all of which further support our mission to
become the recognized leader for Marine Domain Awareness. The
addition of roaming platforms enables us to deploy our ocean data
as a service solution to a more expansive customer base and allows
us to expand further into the subsea data market, such as for
infrastructure surveys.
"Through the continued development of our
Data-as-a-Service and Power-as-a-Service business models, in
combination with our Consulting Services offerings, we are
attracting a broader customer group and expanding our revenue
opportunities. I am excited that Matt is joining OPT. His
experience in selling marine technology services and solutions will
further drive our growth. We are optimistic about the direction we
are heading and the momentum we are starting to feel."
FINANCIAL HIGHLIGHTS
- Revenues –
increased to $484,000 for the 3Q22, compared to $317,000 for the
3Q21, due to $257,000 as contributed by MAR in addition to $120,000
of growth in Strategic Consulting Services. This increase was
partially offset by $210,000 of project-based work, recognized in
the 3Q21 and not repeated due to contract completion.
- Engineering and product
development costs – were down sequentially $617,000 from
the 2Q22 as a result of lower project costs. Compared to 3Q21,
engineering and product development costs increased by $1.5
million, mainly due to OPT's investment in MDA software
development.
- Selling, general, and
administrative (SG&A) costs – increased by $925,000
from the 2Q22 due primarily to approximately $700,000 of
acquisition costs related to MAR and an increase of approximately
$225,000 for share-based compensation. SG&A was up
approximately $1.2 million from the 3Q21 due to the aforementioned
items plus an increase in recruiting fees and an increase in costs
related to the OPT annual general meeting of shareholders.
- Net loss – based
on the above activity, the Company had a net loss of $5.5 million
for the 3Q22 compared to a net loss of $3.1 million for the
3Q21.
Balance Sheet and Cash Flow
- Total unrestricted cash and cash
equivalents were $63.9 million as of January 31,
2022.
- The Company has no bank debt.
- Net cash used in operating
activities for the first nine months of Fiscal Year 2022 was $15.8
million, compared to $8.5 million for the first nine months of
Fiscal Year 2021, primarily due to increase program expenses,
acquisition expenses, and headcount.
Employment Inducement GrantThe
Company granted an inducement award to Matthew Burdyny, the
Company's new Vice President, Global Sales & Marketing. This
award was granted under the Ocean Power Technologies, Inc.
Employment Inducement Incentive Award Plan (the "Plan"), which was
amended on February 11, 2022, to increase the shares of Company
common stock available for issuance pursuant to equity awards
granted under the Plan to 275,000.
The Compensation Committee of the Company's
Board of Directors granted the inducement award pursuant to Section
711 of the NYSE American Company Guide, consisting of 50,000
restricted shares of the Company's common stock vesting equally
over three years. The award is subject to the same terms and
conditions as the equity awards to other officers under the
Company's 2015 Omnibus Incentive Plan. This award was made as an
inducement, material to obtain the employee's acceptance of
employment with the Company.
Matthew Burdyny BioMatthew
Burdyny joined OPT on March 1, 2022, as Vice President, Global
Sales & Marketing. Prior to joining the Company, Mr. Burdyny
was most recently Vice President, Strategy & Business
Development at Teledyne Marine, a leading supplier of marine
technology and a business unit of Teledyne Technologies Inc., and
brings more than 13 years of experience in sales, business
development, marketing, acquisitions, and product development to
OPT. He received a Bachelor of Mechanical Engineering degree from
the University of Victoria and a Master’s degree in Management from
Harvard University.
Conference Call & Webcast
As announced on February 2, 2022, OPT will host
a conference call and webcast to review its financial and operating
results on Tuesday, March 15, 2022, at 9:00 A.M. Eastern Time.
Investors, analysts, and other interested parties may access the
conference call by:
- 877-407-8291 (toll-free in the
U.S.)
- 201-689-8345 for international
callers
- Webcast link via the Company's
website at www.OceanPowerTechnologies.com/investor-relations
A digital replay will be available by telephone
approximately two hours after the call's completion and until June
14, 2022. Access by dialing 877-660-6853 from the U.S. or
201-612-7415 for international callers and using the Conference ID#
13726660. The archived webcast will also be available on the OPT
website investor relations page.
About Ocean Power
TechnologiesOPT provides intelligent maritime solutions
and services that enable safer, cleaner, and more productive ocean
operations for the defense and security, oil and gas, science and
research, and offshore wind markets. Our PowerBuoy® platforms
provide clean and reliable electric power and real-time data
communications for remote maritime and subsea applications. We also
provide WAM-V® autonomous surface vessels (ASVs) and marine
robotics services through our wholly owned subsidiary Marine
Advanced Robotics. We are headquartered in Monroe Township, New
Jersey, and have offices in Houston, Texas, and Richmond,
California. To learn more, visit
www.OceanPowerTechnologies.com.
Forward-Looking StatementsThis
release may contain forward-looking statements that are within the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are identified by certain
words or phrases such as "may", "will", "aim", "will likely
result", "believe", "expect", "will continue", "anticipate",
"estimate", "intend", "plan", "contemplate", "seek to", "future",
"objective", "goal", "project", "should", "will pursue" and similar
expressions or variations of such expressions. These
forward-looking statements reflect the Company's current
expectations about its future plans and performance. These
forward-looking statements rely on a number of assumptions and
estimates that could be inaccurate and subject to risks and
uncertainties. Actual results could vary materially from those
anticipated or expressed in any forward-looking statement made by
the Company. Please refer to the Company's most recent Forms 10-Q
and 10-K and subsequent filings with the U.S. Securities and
Exchange Commission for further discussion of these risks and
uncertainties. The Company disclaims any obligation or intent to
update the forward-looking statements in order to reflect events or
circumstances after the date of this release.
Financial Tables
FollowAdditional information may be found in the Company's
Annual Report on Form 10-K that has been filed with the U.S.
Securities and Exchange Commission. The Form 10-K is accessible at
www.sec.gov or the Investor Relations section of the Company's
website (www.OceanPowerTechnologies.com/investor-relations).
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(in thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
January 31, 2022 |
|
April 30, 2021 |
|
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
63,454 |
|
|
$ |
83,028 |
|
|
Restricted cash, short-term |
|
|
384 |
|
|
|
384 |
|
|
Accounts receivable |
|
|
113 |
|
|
|
350 |
|
|
Contract assets |
|
|
407 |
|
|
|
190 |
|
|
Inventory |
|
|
193 |
|
|
|
- |
|
|
Other current assets |
|
|
436 |
|
|
|
487 |
|
|
|
Total current assets |
|
|
64,987 |
|
|
|
84,439 |
|
Property and equipment, net |
|
|
365 |
|
|
|
406 |
|
Intangibles, net |
|
|
4,203 |
|
|
|
274 |
|
Right-of-use asset, net |
|
|
825 |
|
|
|
1,036 |
|
Restricted cash, long-term |
|
|
222 |
|
|
|
222 |
|
Goodwill |
|
|
7,754 |
|
|
|
- |
|
|
|
Total assets |
|
$ |
78,356 |
|
|
$ |
86,377 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
522 |
|
|
$ |
687 |
|
|
Accrued expenses |
|
|
1,292 |
|
|
|
1,881 |
|
|
Contract liabilities, current portion |
|
|
15 |
|
|
|
- |
|
|
Right-of-use liability, current portion |
|
|
323 |
|
|
|
347 |
|
|
Litigation payable |
|
|
- |
|
|
|
1,224 |
|
|
Advance payable - MAR |
|
|
456 |
|
|
|
- |
|
|
Contingent Liability |
|
|
1,591 |
|
|
|
60 |
|
|
Paycheck protection program loan- current |
|
|
- |
|
|
|
495 |
|
|
|
Total current liabilities |
|
|
4,199 |
|
|
|
4,694 |
|
Paycheck protection program loan, less current portion |
|
|
- |
|
|
|
396 |
|
Right-of-use liability, less current portion |
|
|
615 |
|
|
|
819 |
|
|
|
Total liabilities |
|
|
4,814 |
|
|
|
5,909 |
|
Commitments and contingencies (Note 15) |
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
Common stock, $0.001 par value; authorized 100,000,000 shares, |
|
|
|
issued and outstanding 55,894,213 and 52,478,011 shares |
|
56 |
|
|
|
52 |
|
|
Treasury stock, at cost; 21,040 shares |
|
|
(338 |
) |
|
|
(338 |
) |
|
Additional paid-in capital |
|
|
322,626 |
|
|
|
315,821 |
|
|
Accumulated deficit |
|
|
(248,617 |
) |
|
|
(234,896 |
) |
|
Accumulated other comprehensive loss |
|
|
(185 |
) |
|
|
(171 |
) |
|
|
Total stockholders' equity |
|
|
73,542 |
|
|
|
80,468 |
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
78,356 |
|
|
$ |
86,377 |
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Nine months ended January 31, |
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
484 |
|
|
$ |
317 |
|
|
$ |
1,003 |
|
|
$ |
604 |
|
Cost of revenues |
|
|
|
597 |
|
|
|
698 |
|
|
|
1,320 |
|
|
|
1,248 |
|
|
|
Gross loss |
|
|
|
(113 |
) |
|
|
(381 |
) |
|
|
(317 |
) |
|
|
(644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Engineering and product development costs |
|
|
|
2,465 |
|
|
|
1,019 |
|
|
|
7,518 |
|
|
|
3,334 |
|
|
Selling, general and administrative costs |
|
|
|
2,974 |
|
|
|
1,763 |
|
|
|
7,933 |
|
|
|
5,591 |
|
|
|
Total operating expenses |
|
|
|
5,439 |
|
|
|
2,782 |
|
|
|
15,451 |
|
|
|
8,925 |
|
Operating loss |
|
|
|
(5,552 |
) |
|
|
(3,163 |
) |
|
|
(15,768 |
) |
|
|
(9,569 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
|
16 |
|
|
|
25 |
|
|
|
56 |
|
|
|
45 |
|
Other income (expense), net |
|
|
|
60 |
|
|
|
(16 |
) |
|
|
60 |
|
|
|
(49 |
) |
Gain on extinguishment of PPP loan |
|
|
|
- |
|
|
|
- |
|
|
|
890 |
|
|
|
- |
|
Foreign exchange gain |
|
|
|
5 |
|
|
|
3 |
|
|
|
- |
|
|
|
13 |
|
Loss before income taxes |
|
|
|
(5,471 |
) |
|
|
(3,151 |
) |
|
|
(14,762 |
) |
|
|
(9,560 |
) |
|
Income tax benefit |
|
|
|
- |
|
|
|
- |
|
|
|
1,041 |
|
|
|
- |
|
Net loss |
|
|
$ |
(5,471 |
) |
|
$ |
(3,151 |
) |
|
$ |
(13,721 |
) |
|
$ |
(9,560 |
) |
Basic and diluted net loss per share |
|
|
$ |
(0.10 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.41 |
) |
|
Weighted average common shares used to compute |
|
|
|
|
|
|
|
|
basic and diluted net loss per share |
|
|
|
55,308,799 |
|
|
|
33,715,334 |
|
|
|
53,408,998 |
|
|
|
23,160,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended January 31, |
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(13,721 |
) |
|
$ |
(9,560 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Foreign exchange gain |
|
|
- |
|
|
|
(13 |
) |
|
|
Depreciation of fixed assets |
|
|
104 |
|
|
|
106 |
|
|
|
Amortization of intangible assets |
|
|
18 |
|
|
|
- |
|
|
|
Amortization of right of use asset |
|
|
211 |
|
|
|
159 |
|
|
|
Gain on extinguishment of PPP Loan |
|
|
(890 |
) |
|
|
- |
|
|
|
Stock-based compensation |
|
|
864 |
|
|
|
338 |
|
|
|
Performance obligation shares compensation |
|
|
(60 |
) |
|
|
- |
|
|
|
Loss on disposal of property, plant and equipment |
|
|
- |
|
|
|
2 |
|
|
|
Changes in operating assets and liabilities net of
acquisition: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
237 |
|
|
|
105 |
|
|
|
|
Contract assets |
|
|
(217 |
) |
|
|
188 |
|
|
|
|
Inventory |
|
|
(193 |
) |
|
|
- |
|
|
|
|
Other assets |
|
|
51 |
|
|
|
(310 |
) |
|
|
|
Accounts payable |
|
|
(165 |
) |
|
|
(473 |
) |
|
|
|
Accrued expenses |
|
|
(589 |
) |
|
|
1,192 |
|
|
|
|
Change in lease liability |
|
|
(228 |
) |
|
|
(169 |
) |
|
|
|
Contract liabilities |
|
|
15 |
|
|
|
(90 |
) |
|
|
|
Litigation Payable |
|
|
(1,224 |
) |
|
|
- |
|
|
|
|
|
Net cash used in operating activities |
|
|
(15,787 |
) |
|
|
(8,525 |
) |
Cash flows from investing activities: |
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(319 |
) |
|
|
(17 |
) |
|
Payments for MAR acquisition |
|
|
(3,544 |
) |
|
|
- |
|
|
|
|
|
Net cash used in investing activities |
|
|
(3,863 |
) |
|
|
(17 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from Paycheck Protection Program Loan |
|
|
- |
|
|
|
890 |
|
|
Proceeds from loan payable |
|
|
- |
|
|
|
467 |
|
|
Payment of loan payable |
|
|
- |
|
|
|
(292 |
) |
|
Proceeds from stock option exercises |
|
|
90 |
|
|
|
40 |
|
|
Proceeds from issuance of common stock- Aspire financing |
|
|
- |
|
|
|
9,983 |
|
|
Proceeds from issuance of common stock- AGP At The Market
offering, |
|
|
- |
|
|
|
66,166 |
|
|
Proceeds associated with exercise of common stock warrants |
|
|
- |
|
|
|
769 |
|
|
Acquisition of treasury stock |
|
|
- |
|
|
|
(36 |
) |
|
|
|
|
Net cash provided by financing activities |
|
|
90 |
|
|
|
77,987 |
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(14 |
) |
|
|
32 |
|
|
|
|
|
Net (decrease)/increase in cash, cash equivalents and restricted
cash |
|
(19,574 |
) |
|
|
69,477 |
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
83,634 |
|
|
|
10,930 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
64,060 |
|
|
$ |
80,407 |
|
|
|
|
|
|
|
|
|
|
Contact Information
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
Ocean Power Technologies (AMEX:OPTT)
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